How Does Medicaid Expansion Affect Hospitals?

by | Last updated on January 24, 2024

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The study recently published in Health Affairs found that hospitals in Medicaid expansion states continued

to face lower uncompensated care costs, increased Medicaid revenue, and improved operating margins three to four years after

states decided to expand Medicaid, suggesting that improvements in hospital finances at …

Is Medicaid expansion good for hospitals?

Expanding Medicaid improves both for low-income families. Expanding

Medicaid reduces hospitals’ uncompensated care

. In an emergency, uninsured patients will still be cared for, as hospitals on the front line have demonstrated every day throughout the coronavirus disease 2019 (COVID-19) pandemic.

What impact does Medicaid have on the healthcare industry?

Additional studies show that Medicaid

expansions result in reductions in uncompensated care costs for hospitals and clinics

, and a growing number of studies show an association between expansion and gains in employment as well as growth in the labor market (with a minority of studies showing neutral effects in this …

How does Medicaid expansion affect nurses?

For licensed practical nurses (LPNs), the ACA Medicaid expansions

increased employment by 15 percent

and hours worked per week by 2.4 percent (0.89 hours), but had no statistically significant effect on their wages. … My results imply the 2014 ACA Medicaid expansions led to small average increases in demand for nurses.

Do hospitals lose money on Medicaid patients?

Without considering disproportionate share (DSH) payments to hospitals serving indigent populations,

hospitals are reimbursed 93 percent of cost for Medicaid patients

. … And a report on California hospitals found similar results, with private insurers paying 209 percent of Medicare rates.

What are the negatives of Medicaid?

  • Medicaid Eligibility Requires Jumping Through Hoops. …
  • The Medicaid Budget May Depend on the Administration. …
  • Limited Options. …
  • Long Wait Times. …
  • Aggressive Estate Recovery Programs.

What are the most important elements of the Affordable Care Act in relation to community and public health?

Key provisions of the ACA that intend to address rising health costs include

providing more oversight of health insurance premiums and practices

; emphasizing prevention, primary care and effective treatments; reducing health care fraud and abuse; reducing uncompensated care to prevent a shift onto insurance premium …

Which group of people has the greatest impact on lack of Medicaid expansion?


The South

has relatively higher numbers of poor uninsured adults than in other regions, has higher uninsured rates and more limited Medicaid eligibility than other regions, and accounts for the majority (8 out of 12) of states that opted not to expand Medicaid.

What does the Affordable Care Act mean for nursing?

The groundbreaking

Patient Protection and Affordable Care Act

(ACA) compels nurses to continue innovation, transformational leadership, and care coordination as major stakeholders in provision of the next generation of cost containment, quality advances, and patient access improvements.

What part of the hospital makes the most money?

  • Cardiovascular Surgery. Average revenue: $3.7 million (first year this specialty has been included in the survey) …
  • Cardiology (Invasive) …
  • Neurosurgery. …
  • Orthopedic Surgery. …
  • Gastroenterology. …
  • Hematology/Oncology. …
  • General Surgery. …
  • Internal Medicine.

What do hospitals spend the most money on?

For-profit hospitals typically spend more

on administrative costs

than nonprofit, public, teaching, and rural hospitals. A report issued by The Commonwealth Fund found U.S. hospitals spend more on administrative costs than hospitals in Canada, France, Germany, England, Scotland, Wales, and the Netherlands.

Do states regret expanding Medicaid?

The strong balance of objective evidence indicates that actual costs to states so far from expanding Medicaid are negligible or minor, and that

states across the political spectrum do not regret their decisions to expand Medicaid

.

Which states do not have Medicaid expansion?

Nonexpansion states include 12 states that have not expanded Medicaid:

Alabama, Florida, Georgia, Kansas, Mississippi, North Carolina, South Carolina, South Dakota, Tennessee, Texas, Wisconsin, and Wyoming

. Data: Urban Institute’s Health Insurance Policy Simulation Model (HIPSM), 2021.

James Park
Author
James Park
Dr. James Park is a medical doctor and health expert with a focus on disease prevention and wellness. He has written several publications on nutrition and fitness, and has been featured in various health magazines. Dr. Park's evidence-based approach to health will help you make informed decisions about your well-being.